This annual report describes the recent history of higher education in New Mexico, but it is also intended to provide information useful in preparing for the expanded roles education must play if it is to meet the needs of the state in the coming years. The report begins with summary statements about students and their progress, tuition and financial aid, and public funding of higher education in New Mexico. In 2001, nearly 106,000 students were enrolled in New Mexico's public colleges and universities. Most (54%) were studying on-campus, with the remainder taking courses at off-campus sites. Some 54% of on-campus students are enrolled in community colleges, but since many of these are part-time students, they represent only 44% of the full-time equivalent enrollment. Eighty-seven percent of these enrolled students were New Mexico residents. In the 2000-2001 academic year, New Mexico's public colleges and universities awarded a slightly lower number of degrees (1%) than in 1999-2000; there were 5,405 bachelor's degrees awarded. On average, resident undergraduate students at the states three research universities paid nearly $3,100 in tuition and fees per academic year, and tuition at the three comprehensive universities averaged about $2,232. All six universities raised tuition in the academic year. Students received nearly $310 million in student financial assistance, and of this sum, more than $273 million was awarded from public funding sources. Instructional programs at New Mexico's public postsecondary institutions continue to receive significant support from state funds, as detailed. Data tables contain further detail on each of these areas. (Contains 2 figures and 47 tables.) (SLD)